Rental Contracts More Than Doubled In 5 Years

Malta’s rental market has undergone significant change over the past fifteen years, with major reforms discussed during a recent conference addressed by Minister for Social and Affordable Accommodation Roderick Galdes. He highlighted how the sector, once largely unregulated, began its transformation in 2020 when the Government introduced a new legislative framework. This reform made the registration of private rental contracts mandatory, established minimum lease durations, and designated the Housing Authority as the regulator of the private rental market.

Minister Galdes noted that the number of registered rental contracts more than doubled in five years, rising from around 27,000 in 2020 to over 71,000 by October this year. He said the Government is committed to expanding the stock of affordable housing to relieve pressure on the private sector. Spending on rent subsidies under the Housing Benefit Scheme has increased sharply, from €1.6 million in 2017 to almost €11 million in 2024.

To promote stability, the Government has introduced tax incentives for long-term leases and set up a panel to resolve landlord-tenant disputes fairly and quickly. The creation of a national rental register has also improved transparency, helping to identify trends and address affordability concerns.

Minister Galdes added that new legislative amendments introduced in September followed extensive consultation with stakeholders. These aim to reduce bureaucracy, limit overcrowding and ensure greater balance between the rights of landlords and the wellbeing of tenants.

The Chief Executive of the Housing Authority, Matthew Zerafa, stated, “The rental sector has evolved into a market with strong economic prospects that attracts investment. We are using the Authority’s research and expertise to strengthen it in a way that keeps it sustainable and dynamic, meeting the everyday needs of Maltese people and families.”

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Photo Source: DOI – Daniel Scicluna